Modulight’s result clearly fell short of analysts’ expectations – Still no guidance

Laser technology company Modulight’s result in the third quarter fell short of expectations.

The company achieved an operating profit of -2.1 million euros in the third part of the year, while the information service Factsetin the consensus of three analysts expected a result of -1.8 million euros. Last year, the result was a loss of EUR 3.1 million. The lowest forecast was -1.9 million euros and the highest was -1.5 million euros.

“Our extensive investment program has been completed and the related implementation costs have decreased, which is reflected in improved profitability. In addition, the reduced amount of commissioning work for production equipment enabled a record amount of work in product development itself”, CEO Seppo Orsila says in the announcement.

Turnover clearly fell short of forecasts. It was 0.6 million euros in the third quarter. The consensus was that the company would have reached a turnover of 1.4 million euros in July–September. A year ago, in the same period, Modulight’s turnover was 0.4 million euros. The forecast range was 1.3–1.5 million euros.

“In accordance with our strategy, we continued to expand geographically and promote projects related to new indications. Our product development pipeline remained at the level of the previous quarter at 30 projects”, states CEO Orsila.

The company does not give profit guidance for the current year.

“The majority of Modulight’s customer projects are various types of projects in the early development phase. In accordance with its strategy, Modulight is also moving from payments based on device deliveries to a new payment model based on treatment times (PPT business model). It is difficult to predict the progress of individual projects, and macroeconomic and geopolitical uncertainty continue to affect market development. For these reasons, forecasting turnover is challenging, and Modulight does not give guidance on turnover or profitability for the year 2024”, the company justifies.